Financing by way of Equity investment, Hedge Funds, Commercial Banks or Other Sources

Financing Investment dollars may be from multiple Equity Sources

Energy Financing

The recent crash in oil prices has dramatically changed energy financing. We were there in 1982 when the last major oil crash began. It was brutal. There is no substitute for experience and we know what the mindset currently is for borrowers, investors and funders.

We know the mistakes that have been made by energy companies over the past few years and will be made during these tough times. We also know the smart moves that can still be made.

The unfortunate truth is many energy companies have not been as flexible as they should have been over the past two years in considering financing alternatives. The door has closed for many of them but for others who are willing to be smart, work hard and be realistic there is still a lot of opportunity to resolve current problems and create opportunities for the future.

For many companies, survival is now the primary concern. But for some companies, taking advantageof today's situation will be their primary focus until things eventually settle down again and energyprices have recovered enough for the industry to return to normal.

Types of Projects

We consider projects in the following energy sectors:

Oil and Natural Gas Exploration & Production

Pipelines

Refining

Requirements

The minimum size financing we do for energy projects is $1 Million. Financing during periods of low energy prices is based primarily on reserves but some projects will require a solid offtake agreement. All engineering is being even more carefully scrutinized during the due diligence process. Terms are typically from 3 years to 5 years and rates can either be fixed or floating depending on the situation.

Alternative Capital Financing

In some situations, a new energy client may request funding on a basis normally offered only to existing clients. This arrangement has different requirements. The strength of the client’s project is a major factor in determining if this option is available. What is needed is a reputable third-party engineering evaluation of the project’s hard assets, strong management and a solid off-take agreement from a strong buyer. The funding is non-recourse and in most situations repayment may be made before maturity.

DISCLAIMER: Arthur Ekrem Consulting LLC and its principals-partners-agents, do not render legal advice, perform accounting services, nor act as an investment advisor or broker-dealer within the meaning of applicable state and federal securities law. Arthur Ekrem Consulting LLC its principals and partners serve as a retained advisory service and consulting firm.